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U.S. Traders Fail to Bite on Strong Equity Market Open

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 12, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets opened stronger as expected as traders renewed their demand for higher risk, higher yielding assets. Without any economic reports to concern investors, expectations were for a trend day with a bias to the upside. After the New York trading session opened sharply higher, U.S. traders failed to bite on the higher opening, causing the markets to break to the downside. This was the typical pattern throughout 2009 where investors would back away from strong openings and instead wait for meaningful dips to take the market back into value zones.

    March Treasury Bonds and March Treasury Notes traded mostly lower on Monday. Demand for higher yields was the primary cause of the weakness as traders sold fixed income instruments in an attempt to capture better yields in equities. Investors are becoming concerned that the government is working on providing additional stimulus to help create jobs. This is likely to pressure Treasuries as it will increase the debt supply.

    The weaker Dollar triggered a strong surge in February Gold. The first upside objective at $1151.30 was reached fairly easily overnight. The next upside target is $1169.30. A break back under the 50% level at $1151.30 could trigger a decline to $1127.20 over the near-term.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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